April 20, 2024

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[THE INVESTOR] GS Engineering and Construction’s profits this year will improve more than 30 percent, said Mirae Asset Daewoo on Jan. 10, maintaining a “buy” recommendation and 40,000 won (US$37.34) target price.

Its operating profit from the fourth quarter last year hiked 41 percent on-year to 74.4 billion won, missing market expectations, as commodity price ratio for its overseas projects rose while non-operating loss from strong won reached 70 billion won, said analyst Lee Gwang-su.

Its earnings prospects this year are bright, said the analyst, forecasting that revenue from housing will increase more than 15 percent and overseas commodity price ratio will improve as well. Operating profit this year will spike 37 percent from 2017 to 396.9 billion won, according to Lee. 

Orders from overseas will pick up from the second half and it is planning to join the bid for plants in Thailand, Indonesia and Middle East, he added.

By Hwang You-mee (glamazon@heraldcorp.com)